NEW YORK, NY – Shares advanced in Asia on Friday after White House officials said China and the U.S. were getting close to an agreement to cool tensions over trade.
Markets have swung from euphoria to alarm as officials in Beijing and Washington offered conflicting opinions about the state of the negotiations over ending a tariff war between the two largest economies.
On Thursday, Assistant to the President for Trade and Manufacturing Policy Peter Navarro said in comments to Fox TV that the two sides were “on a glide path” toward agreement.
“We’re going to get a great deal,” he said when asked about comments by Chinese officials who said Beijing expects the U.S. side to gradually roll back some of the billions of dollars’ worth of tariffs imposed on Chinese exports by President Donald Trump in an effort to get China to change its trade and technology policies.
Trump’s economic advisor, Larry Kudlow, likewise reportedly said Thursday the two sides were close to a deal.
That was good enough for investors gauging the prevailing winds a month after the two sides announced they were working on a Phase 1 agreement that would be followed by more complex negotiations.
Japan’s Nikkei 225 rose 0.7% to 23,308.07 and the Kospi in South Korea added 1% to 2,161.00. The Shanghai Composite index was flat at 2,910.82 while Hong Kong’s Hang Seng picked up 0.3% to 26,408.86.
Australia’s S&P ASX 200 advanced 0.8% to 6,790.10, while the Sensex in India jumped 0.8% to 40,601.18. Shares rose in Taiwan, Singapore and Jakarta but fell in Bangkok and Kuala Lumpur.